Cyient surges 140% so far in CY23; Cyient DLM zooms 179% over issue price

Shares of Cyient and its subsidiary Cyient DLM hit their respective all-time highs on Tuesday as they rallied up to 19 per cent on the BSE in the intraday trade

Shares of Cyient and its subsidiary Cyient DLM hit their respective all-time highs as they rallied up to 19 per cent on the BSE in Tuesday's intra-day trade in an otherwise range-bound market. In the past one month, Cyient (up 25 per cent) and Cyient DLM (up 47 per cent) have outperformed the S&P BSE Sensex, which was down 0.38 per cent during the month.

Individually, Cyient DLM zoomed 19 per cent to Rs 739.85 today, hitting its highest level since market debut on July 17, 2023. With today's rally, the stock of the industrial products company has zoomed 179 per cent from its issue price of Rs 265 per share.

Cyient DLM is a leading Integrated Electronics Manufacturing Solutions (EMS) provider that offers Design Led Manufacturing (DLM) solutions to its customers. During the June quarter (Q1-FY24), Cyient DLM have order intake of $33.6 million, providing growth and stability in Backlog.

The company provides EMS as build-to-print (B2P) and build-to-specification (B2S) services. The core solutions provided by Cyient DLM encompass various key components, including printed circuit board assembly, cable harnesses, and box builds. These components play a crucial role in safety of critical systems such as cockpits, inflight systems, landing systems, and medical diagnostic equipment.

The company has a customer base which includes global OEMs in the aerospace and defence, medical technology and industrial sectors and its key customers include Honeywell International, Thales Global Services, ABB Inc, Bharat Electronics, and Molbio Diagnostics.

Meanwhile, shares of Cyient, too, hit a new high of Rs 1,945, surging 10 per cent on the BSE in the intraday trade. The stock price of Cyient DLM has appreciated by 140 per cent thus far in calendar year 2023, as against 7.4 per cent rise in the benchmark index.

The company is engaged in providing global technology services and solutions specialising in geospatial, engineering design, IT solutions, and data analytics.

The company's range of services include digitisation of drawings and maps, photogrammetry, computer aided design/engineering (CAD/CAE), design and modelling, repair development engineering, reverse engineering application software development, software products development, consulting, analytics and implementation. Cyient specialises in software services and solutions for the manufacturing, utilities, telecommunications, transportation & logistics, local government and financial services markets.

Last month, Cyient had collaborated with Microsoft to establish "EnGeneer" Center of Excellence (CoE), using Azure OpenAI Service and Generative AI technologies to drive engineering innovation across industries.

EnGeneer CoE will enhance engineering lifecycle agility by developing platforms and tools that empower engineers with automation and assistance, ultimately boosting productivity and quality through Generative AI, the company had said in exchange filing.

As regards outlook for 2023-24 (FY24), Cyient said that FY24 will prove to be an exciting and transformational year for the Cyient group as it grow Cyient Ltd and Cyient DLM as separate entities.

"The new structure promises to boost the growth and ambitions of each organization in its own trajectory. “We will continue to apply technology imaginatively to solve problems that matter across the high-growth sectors of transport, connectivity, sustainability, healthcare, automotive, semiconductor, and design-led manufacturing," the company said in its FY23 annual report.